How To Furnish Your Investment Property for Maximum Returns
Is your furniture helping or hurting your rental returns? Discover smart, high-impact ways to furnish your investment property for long-term value.
Furnishing an investment property is more than a finishing touch. It's a practical step that helps improve rentability, attract better tenants, and support stronger returns over time. It also complements the long-term value of the asset itself.
According to new CoreLogic data, national home values in Australia have risen by 39.1% over the past five years, adding around $230,000 to the median dwelling price. With demand still far outweighing supply, prices are expected to hold firm. [1]
In a market like this, presentation matters. The way a property looks, feels, and functions play a direct role in how it performs. Every decision around furnishing strategies should be made with those things in mind.
Start With Who You're Furnishing For
Every property speaks to a specific type of tenant, and your furnishing choices should reflect that. A one-bedroom apartment in the inner city has different needs than a family townhouse near schools. Think about how your prospective tenants will live in the space and what they expect from it.
Keep the design clean and neutral when furnishing a rental property. Avoid personal taste or anything too decorative. Focus on items that make the space feel practical and easy to live in. Stick to modern finishes, balanced tones, and quality furniture that fits the scale of the room.
Comfort matters more than you might think. Prioritise pieces that are used the most, such as a sofa, dining setup, and bed. If you're aiming to stand out, offering the best possible mattress is a simple but effective way to add value. It's one of the first things tenants notice, even if they don't mention it. These are the details that set a well-furnished property apart.
Prioritise Durability Over Decoration
Part of your furnishing checklist should be furniture that can hold up under daily use. It should be sturdy, easy to clean, and suited to the pace of tenant turnover. The goal is to select pieces that stay presentable without constant upkeep, even as normal wear and tear sets in.
Avoid fragile finishes or high-maintenance fabrics. Choose materials that resist wear and clean easily. Timber or powder-coated metal frames are often a safer bet than particleboard or glass. Soft furnishings should be stain-resistant and designed for longevity. Fabrics that feel comfortable and clean well are worth the investment as well, even in a vacation home or guest-focused setup. [2]
Focus on quality where it counts. Tables should feel stable. Chairs shouldn't creak after a few uses. Cushions made with high-density foam tend to last longer and hold their shape better than down-filled options. These aren't glamorous decisions, but they save time and reduce future costs. When furniture works well, long-term renters notice, and so do your returns. [2]
Make the Most of the Space You Have
A well-furnished room isn't always full. In fact, too much furniture makes the space feel smaller and harder to live in. Layout and scale matter. You want each room to feel open, functional, and comfortable to move through, especially high-traffic areas like the living room or bedrooms.
Start with the layout. Leave space around beds, allow proper clearance at the dining table, and avoid placing large items near entry points. Rooms should feel balanced. Choose furniture that fits the size of the room, not what looks good in a catalogue. If you're furniture shopping, stick to pieces that match the actual scale of your space.
Meanwhile, multi-functional pieces are pretty popular in the rental market these days, and for a good reason. Place them where it makes sense. Storage beds, bench seating, or fold-out desks are practical additions that don't look out of place. An enclosed media console is also worth considering. It keeps the space tidy without compromising on design and gives tenants a place to store remotes and smaller everyday items. Consider adding storage ottomans or a sofa bed in smaller dwellings to help tenants adapt the space to suit their needs. [3]
Think Beyond First Impressions
Well-furnished properties often lease faster, but short-term appeal isn't the goal. A good setup should last beyond one property listing cycle. Aim for a standard that looks good now and holds up over time, both in condition and style.
The right tenants stay longer in homes that feel considered. That reduces vacancy, maintenance, and stress for any property owner. It also signals that the property is cared for, which encourages better treatment in return. You don't need to over-capitalise. You need smart, practical furnishing ideas that support the way people actually live.
Avoid furnishing for the sake of photos. Good images might get attention, but the real value comes when the space delivers on expectation. Comfortable, well-placed furniture creates a home people want to stay in. Wall art, outdoor furniture, and even small kitchen furnishings can help the space feel complete without overdoing it.
Wrapping It Up
Furnishing your investment property should serve a clear purpose. It's there to improve appeal, support daily use, and reduce ongoing maintenance. Avoid overcomplicating the process. Know your market, focus on durable essentials, use the space well, and think long-term. The right furniture doesn't just fill a room. It adds value to the property, increases rental income, and helps any real estate investor or property investor build stronger returns year after year.
References:
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“Australia’s median home value has increased by about $230,000 in past five years, data shows,” Source: https://www.theguardian.com/australia-news/2025/apr/09/australian-median-home-value-increased-about-230000-in-past-five-years-data-shows
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“When buying that first home, it's important to think about what furniture is worth investing in,” Source: https://www.businessinsider.com/furniture-decor-worth-splurging-on-when-you-buy-a-home-2020-8#a-couch-for-the-living-room-should-be-one-of-the-first-items-you-buy-2
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“How to Choose Living Room Furniture,” Source: https://www.wikihow.life/Choose-Living-Room-Furniture